Japan’s Caucasus Initiative

JAPANESE AMBASSADOR IN BAKU, MR. TERUYUKI KATORI, IN AN EXCLUSIVE INTERVIEW WITH AZERI OBSERVER SPEAKS ON THE NEW JAPANESE EMPEROR, GOOD PROSPECTS FOR DEVELOPING TIES WITH AZERBAIJAN IN TOURISM, AGRICULTURE AND TECHNOLOGIES, AND THE BILATERAL AGREEMENT WHICH WILL CONTRIBUTE TO THE ENHANCEMENT OF ECONOMIC RELATIONS AND INVESTMENT COOPERATION. HE ALSO PROVIDES DETAILS ON FUTURE HIGH-LEVEL MEETINGS, OPPORTUNITIES FOR AZERBAIJANI BUSINESS IN JAPAN AND MENTIONS MUST-VISIT JAPANESE RESTAURANTS IN BAKU.

BY GEMMA BIANCHI SLATER

AZERI OBSERVER EDITOR

Question: Could you briefly tell our
readers about the current state of relations between our countries?

Answer: Japan established diplomatic relations with Azerbaijan
as soon as Azerbaijan gained its independence in 1991, and despite being 7,500
kilometers apart, we have successfully developed friendly relations. There are
no political or historical disputes between the two countries and both Japanese
and Azeri people see each other positively. As a Japanese diplomat I am very
glad to have a chance to live and work in the friendly and positive atmosphere
of Baku, and all the regions that I visit. I am also impressed to see Azerbaijan
continually strengthen its presence in the international community, under the
leadership of President Ilham Aliyev. One episode that I think illustrates the
deep ties between our countries is the Japanese exhibition held last year by
the Azerbaijan National Museum of Arts. Some of these works date back several
centuries, while some are from the modern era. This collection illustrates the
continuous cultural exchange between the two countries, even before the
establishment of modern Azerbaijan. We are deeply grateful to the museum.

Economic and technical cooperation, supported by Japanese expertise and
knowledge, is one of the pillars of Japan’s efforts to develop friendly
relations with Azerbaijan since its independence. For example, technological
cooperation and training in the fields of infrastructure, human resources,
industry, and institution building, as well as small-scale, flexible grant
assistance for the development of the regions outside of Baku. For years now we
have supported exchanges of people from dignitaries to the Azeri youth, welcoming
exchange students for training in various fields. We know that in the future
those students will be the ones who carry the relationship forward, between our
two countries.

President Ilham Aliyev visited Japan in 2006, and through numerous meeting
and visits with His Majesty the Emperor and then-Prime Minister Koizumi,
deepened relations between our two countries. We also strengthened ties when
Minister of Foreign Affairs, Taro Kono visited Baku in September last year. He
met with President Ilham Aliyev, Prime Minister Novruz Mammadov, and Foreign
Minister Elmar Mammadyarov. Based on the Caucasus Initiative outlined in
Minister Kono’s speech, I strongly believe we will see further development of
the relations between Japan and Azerbaijan, together within the Caucasus
region.

Q.: What are the main items of
reciprocal trade between our countries? How does the volume of trade change
year over year?

A.:
Currently, Japan exports iron, steel, automobiles, rubber tyres and tubing to
Azerbaijan. Azerbaijan’s major exports to Japan are non-ferrous metals such as
aluminum and agricultural products such as wine, honey, and licorice, which is a
main ingredient in Chinese herbal medicine. In the last few years, annual
trading volume between the two countries has remained stable, between roughly $70
million and $100 million. Currently, more than half of the figures shown above
are from Japanese exports (exports in 2018 were around $55 million and imports were
approximately $7.9 million.) In the future, the scale of those economic
relations and investment will increase, given the agreement to begin formal
negotiations during Minister Kono’s visit and the activation of the Japan – Azerbaijan
Joint Economic Committee. Furthermore, Japanese companies including ITOCHU and
INPEX are participating in the development of Azeri-Chirag-Gunashli oil and gas
fields and Baku-Tbilisi-Ceyhan pipeline. In that sense, Japan is contributing
to Azerbaijan’s position as an oil exporter.

Q.: How
can Azerbaijan and Japan further develop our economic and trade relations?

A.: Recently, Japanese
small businesses have shown interest in exporting Japanese foodstuffs to
Azerbaijan and there are several Japanese restaurants such as Seto, Katsu (a
new restaurant) and Yui – all of which you visit! However, this exchange does
not have to be one way. I believe that Azerbaijani agricultural products could
be exported to the Japanese market as well. As I
mentioned before, Azerbaijan currently imports more than it exports to Japan,
so I would encourage Azerbaijan’s government and companies to conduct research
on the Japanese market and consumers. With
the support of the Japan External Trade Organization (JETRO) and others from
the Japanese side, we can implement ambitious marketing strategies. I think
that tourism is another area where we could see further development of our
union. Japanese tourists love to learn about different cultures and historical
sites, so Azerbaijan is a compelling destination for them.

Recently, Japanese nationals became eligible to obtain a visa on
arrival at the airport. Despite the fact that the total number of Japanese
tourists is relatively low (the approximate number of the passengers in 2018
was 5,000), it is still, however, an upward trend. Many Japanese tourists visit
neighboring Turkey, and in my opinion, developing new tour packages that
include Turkey, Georgia and other nearby countries in the region would be
effective for attracting more Japanese tourists to Azerbaijan. In addition, it
is important to further improve tourism infrastructure and quality of service;
as well as the availability of direct passenger flights (again, like they have
for Turkey), which is currently under discussion.

Q.: Japan has a very competitive market.
What should Azerbaijani business know about the Japanese market?

A.: If Azerbaijani companies would like to
expand to Japan, the first step would be to conduct a preliminary survey of the
Japanese market to have a clear vision about the products Japanese consumers want,
and the quality they demand. For example, Azerbaijan’s fresh fruits and
vegetables are incredibly delicious. There are products that Azerbaijan has,
that cannot be found in Japan. I recommend anyone considering the Japanese
market to choose products strategically and refine their strategy. If I can
speak more about agricultural products, Japanese consumers demand very high
quality for such products. If damaged or infested products are included, the
products become unsellable. Pests, disease, the strictness of plant quarantine
and freshness, are some of the challenges that Azerbaijani businesses would
have to consider, for example, the processing and appropriate quality control
methods. Japanese consumers have an experienced eye, and
if the goods are of high quality, they will pay a fair price. Azerbaijan has
potential. It is up to the Azerbaijani people to take the advantage of it.

Q.: Tell us about investment cooperation
between our countries.

A.: Over the course of 26 years, Japan has invested a total of roughly $7
billion in Azerbaijan, which ranks relatively high compared to the investment
of other foreign nations.Most of that investment is in the oil and gas
industry. As I mentioned before, during the official visit of Foreign Minister,
Taro Kono, last September, we agreed to start official talks towards a bilateral
investment agreement. This could assist Japanese companies to penetrate into
new sectors, therefore is important to also generate attractive investment
opportunities for the Azerbaijan side; to create fair rulesin
compliance with international principles to improve the investment atmosphere
and ensure transparency. Regarding the intergovernmental yen loan projects, the
following projects have been completed: Severnaya1 Gas Combined Cycle Power
Plant Project (1998, approximately $193 million), Phase 2 (1999, approximately
$153 million), 2nd Shimal Gas Combined Cycle Power Plant Project (2005,
approximately $274 million), and the Provincial Cities Water Supply and
Sewerage Project（2009,
approximately $291 million).

In addition, though it is on a much smaller scale, Japan has implemented
grassroots grant aid throughout Azerbaijan. The main purpose
of these grants is the economic and social development of developing countries.
The project supplies smaller scale grants, for the direct benefit of local
residents to be realized through local NGOs or local public agencies. A total
of 248 projects, equaling almost $21 million, has already been implemented in
Azerbaijan from 2000 till 2018. The grants have helped to support education,
school repairs and the construction of health clinics in villages to ensure
they have safe drinking water. Those areas account for almost one-third of the
total. I believe that there is potential for even more varied technical
cooperation from our side, especially the training of specialist
personnel. In agriculture and
manufacturing, it is the quality of the workers on site who determine the
success of the industry. Japan has many vocational secondary schools
specialized in fields, such as agriculture and industry. The young people
educated there are holding up our industry in Japan. The Japan International
Cooperation Agency (JICA) accepts around 20 trainees from Azerbaijan every
year. Trainees come from a wide variety of areas: urban transportation,
maternal and child health, renewable energy, road construction, water and
sewage management, small-and medium-sized companies, customs operations, and
oil development. They will contribute to the nation building of Azerbaijan in
the future, using the knowledge they gain in Japan, which will also lead to the
reinforcement of friendship between our two countries.

Q.: As you mentioned, Japanese INPEX and ITOCHU are among the shareholders
of the Azerbaijani oil and gas block, Azeri-Chirag-Gunashli. What are the
expectations of Japanese companies from the next stage of development of this
Contract Area (Azeri Central East Project)?

A.: There are
already strong ties between Japan and Azerbaijan in the energy sector. That includes
ITOCHU and INPEX’s participation in the development of Azeri-Chirag-Gunashli
(ACG) block of oil and gas fields. In September 2017, the agreement to extend the
ACG Production Sharing Agreement (PSA) “the Contract of the Century” until
2050, was signed. ACG oil fields are important for our country from the
viewpoint of diversifying our resource supply.
There is no constant oil export to Japan, so in case of tight supply,
partial export is allowed. As an embassy, it is our sincere desire to continue
to assist Japanese companies in cooperating with the government of Azerbaijan
in this area.

Q.: Azerbaijan pays great attention to
diversification of economy and development of the non-oil sector. What non-oil
industries are promising for bilateral cooperation?

A.: I think
that tourism, which I already mentioned, is a significant one. Jun Takashina,
Vice Commissioner of the Japan Tourism Agency, participated in the recent
meeting of the UNWTO in Baku, and had the opportunity to discuss mutual tourism
development with the Minister of Ecology and Natural Resources, Mr. Mukhtar
Babayev and the Chairman of the State Tourism Agency of Azerbaijan Mr. Fuad
Naghiyev. The Minister gave an interesting introduction on the historical
heritage and national resources reserves. As the minister is also a co-chairman
of Japan-Azerbaijan Joint Economic Committee, he will be attending the meeting in
Japan planned for November. He mentioned the need to promote Azerbaijan in
Japan, through the media. Beyond tourism, I think that some of Japan’s more
advanced technological expertise might also be an area ripe for cooperation.
Those include selective breeding and cultivation in agriculture and fishing.
Taking the advantage of the joint economic committee and broadening our view to
other areas, we can find areas for synergy, based on the strengths and demands
of both sides and deepen cooperation through JICA trainings or study programs.
INPEX and SOCAR hold training programs for young engineers of SOCAR in Japan
every year. These kinds of initiatives give me hope for the development, of
both public and private multilateral cooperation.

Q.: Japan has vast experience in
renewable energy projects. Could this experience be applied in Azerbaijan?

A.: Japan is a country with no energy resources, and thus relies mostly on
foreign imports. The Great East Japan Earthquake in 2011, when Japan
experienced significant power shortages was a wake up call for us. We have
since introduced renewable energy to improve our self-sufficiency, and the
Japanese government aims to increase the proportion of renewable energy; for
example, sunlight, wind power and biomass, in the total energy supply to nearly
a quarter in 2030, up from 16% now. Recently, solar power adaption is
increasing in Japan and with it, Japanese companies’ expertise in such areas,
such as creating excess power solar systems.
Those technologies could all be beneficial to Azerbaijan.

Q.: Does
Azerbaijan and Japan hold any negotiation to facilitate visa regime?

A.: As a result of long negotiations, we started mutual visa waiver measures
for diplomatic passport holders in 2017 and eased short-term visa requirements
for ordinary Azerbaijani passport holders. The number
of visa applications by Azerbaijani citizens to Japan continues to rise; possibly
as a result of these measures. The Azerbaijani side has also implemented free
visa on arrival, for Japanese citizens. The number of Japanese tourists is on
the rise, as I mentioned before. The fact that Azerbaijan has introduced such
facilities, shows that in some aspects, Azerbaijan is ahead of Japan in some
ways.

Q.: Are there further bilateral meetings
planned, to intensify cooperation between our countries?

A.: We invited the Minister of Taxes, Mr. Mikayil Jabbarov, to Japan in March
of this year. The minister inspected Japan’s infrastructure, innovative
agricultural facilities, met with Japanese political and economic officials,
and developed a good understanding about our country. Officials from around the
world are expected to participate at the Enthronement ceremony, to be held in
Tokyo in October. We can see high-level
participation from Azerbaijan at that event. As mentioned before, Minister of
Ecology and Natural Resources, Mr. Mukhtar Babayev, is expected to participate
in the meeting of the Japan Azerbaijan Joint Economic Committee to be held in
Tokyo this autumn. Minister Babayev has been visiting Japan frequently since
the time he became the head of the Azerbaijan-Japan Working Group on Inter-parliamentary
Relations, and made a significant contribution to the bilateral relations.

Q.: You mentioned the Enthronement ceremony for the Emperor. Could you
please tell us more about this occasion and the Emperor of Japan?

A.: On April 30, 2019, after serving as the emperor for 30 years, His Majesty
the Emperor Akihito abdicated, and on May 1, the following day, The Ceremony
for Inheriting the Imperial Regalia and Seals took place, in which the new
Emperor inherited the Imperial Regalia and the State and Privy Seals upon His
accession to the throne as the 126th Emperor. The imperial family is said to be
the world’s longest continuous hereditary monarchy. According to Japan’s oldest
history book, Nippon Shoki (The Chronicles of Japan), the imperial family’s
origins date back more than 2,600 years. Even if we count only from the oldest
emperor confirmed in official archives from ancient China, that history is
still 1,600 years old. According to the current Constitution of Japan enacted
in 1947, the Emperor is the symbol of the State and of the unity of the people
of Japan. Emperor Naruhito was born on February 23, 1960. His Majesty has long
researched the history of transportation in the Medieval Ages in Japan, and
studied the history of water transport on the River Thames at Oxford
University.

Emperor Naruhito loves sports and music, especially mountain climbing,
jogging, tennis and playing the Viola. He has climbed more than 120 mountains,
including Mt. Fuji in Japan, and has contributed several essays to famous
mountaineering magazines in Japan. Her Majesty the Empress Masako, lived abroad
from an early age with her diplomat father. After graduating from Harvard
University, she also chose to become a diplomat and served in our foreign
ministry for about six years, before she became engaged to Emperor Naruhito. Her
Majesty Masako is a commoner, just like Her Majesty the Empress Emerita
Michiko. Later in the year on October 22, the new Emperor will proclaim His
enthronement at the Ceremony of the Enthronement and receive felicitations from
representatives from both Japan and abroad. This will be followed by the
Imperial Procession Following the Ceremony of the Enthronement in which His
Majesty the Emperor, travels by convertible from the Imperial Palace to His
residence and receives congratulations from the general public along the way.

Finally, I would like to share a part of His Majesty the Emperor Naruhito’s
first public address on his Enthronement Day. “In
acceding to the Throne, I swear that I will reflect deeply on the course
followed by His Majesty the Emperor Emeritus and bear in mind the path trodden
by past Emperors, and will devote myself to self-improvement. I also swear that
I will act according to the Constitution and fulfill my responsibility as the
symbol of the State and of the unity of the people of Japan, while always
turning my thoughts to the people and standing with them. I sincerely pray for
the happiness of the people and the further development of the nation as well
as the peace of the world.”

Q.: Could you tell us about cultural and
humanitarian links and projects between our countries?

A: Every year the Japanese government sponsors several Azerbaijani students
from different fields to study at Japanese universities; recently, three
masters-level research students and Japanese studies students. In addition,
each year we bring groups of brilliant youths from different walks of life –
including from Azerbaijan – to Japan, to create a space for human and
intellectual exchange. In Azerbaijan, there are Japanese language faculties at
Baku State University and Azerbaijan University of Languages, that are cultivating
top-class researchers on Japan. Amongst
them, there are a considerable number of Japanese culture and language lovers.
In Japan, there is also considerable number of people interested in Azerbaijan,
involved in research and exchanges. Many also contribute to ties between our
countries through business. Exchange through tourism also shows signs of
development.

Speaking about high-level relations, former Deputy Prime Minister, Abid
Sharifov, has served as chairman of the Economic Joint Committee for many
years. His countless visits to Japan have made a significant contribution to
bilateral relations. There are also pro-Japanese leaders in the next generation
of politicians including Minister Mukhtar Babayev and Minister Mikayil
Jabbarov. In Japan, we have the Japan-Azerbaijan Inter-Parliamentary Friendship
League, chaired by Akira Amari, member of the House of the Representatives,
which boasts many influential members. This group has effective relations with
the League in Azerbaijan. Through such exchanges, we have seen understanding
and cooperation steadily growing between our countries, and I think we will see
even more development through the expansion of exchange opportunities. This is
one of the main issues we will address, as an embassy in line with the Caucasus
Initiative.

Q.: You
have lived in Azerbaijan for more than 2 years and have had time to get to know
the country and its people. What are the biggest cultural differences between
Azerbaijan and Japan? What are the similarities? What has impressed you most
about the culture, history and people of Azerbaijan?

A.: Japan and Azerbaijan share many things culturally, given the fact that from
ancient times they were linked through the exchange of goods and ideas along
the Silk Road. Their languages are both part of the Altaic languages and have a
similar grammatical structure. I feel that our countries share many values. We
both place a lot of importance on familial and communal ties, as well as having
respect for older people. We even live in similar ways, in that both
Azerbaijanis and Japanese take off their shoes in the house. Yet there are also
differences. Japan is an island nation and a relatively homogenous society.
Even though Japanese culture shares roots with East Asian cultures such as China
and Korea, Japan shaped a unique and independent culture over a long period. On
the other hand, Azerbaijan shares land borders with other countries. From
ancient times, it has been a “crossroads for culture” where diverse cultures
mixed, and came together to form a culture rich in diversity, in an extremely
open society. You can see the influence of Ancient Persian culture, Turkish
culture, Islamic traditions, Jewish traditions as well as Western traditions.